Electrolux risk management framework
The risk mapping process within Electrolux is a management tool for the formal collection and incorporation of risk information into decision making and governance processes. Risk mapping is part of Electrolux Enterprise Risk Management (ERM) with the aim to create understanding of and commitment to risk management as a critical factor for decision making and for creating value. The core of the risk mapping process is to identify and evaluate existing and emerging risks to enable opportunities to leverage risk and risk management options that create value.
Electrolux faces different types of risks that can be divided into Strategic risks and Manageable business risks. Strategic risks are related to the Group’s strategy and are impacted by the external environment, while the business risks are related to operational and financial risks. These are managed by the Group’s operational units and Group Treasury respectively. Electrolux has several processes to manage overall risks through operational activities that are performed by the business area boards.
The Group has also established internal bodies that manage risk exposure on a regular basis. Examples of internal bodies are the Enterprise Risk Management Board, the Insider Committee, the Ethics & Human Rights Steering Group, the Audit Board and the Tax Board. For more information on the Electrolux organizational structure and system for internal control and risk management, see the Corporate Governance report in the Annual Report.